Canadian Spending Stays Strong, Energy Leads, and the Fed Decides

“To achieve satisfactory results is easier than most people realize; to achieve superior results is harder than it looks.” - Benjamin Graham

Last Week’s Overview

Source: Bloomberg (July 22, 2026)

Weekly Insights

Each week, we break down the key events and market movements shaping the investing landscape. From economic data to investor sentiment and global headlines, this section captures what mattered most, and how it impacted markets. 

Canadian Consumers Keep Spending Across the Board

Canadian retail sales rose 1.0% in May to $73.7 billion, with all nine major retail subsectors posting gains and core sales up 0.9%. Statistics Canada's advance estimate points to a further 0.4% increase in June. This kind of breadth tells us households across the country continue spending confidently on goods from groceries to vehicles, even in a higher interest rate environment.

Healthy consumer demand supports corporate earnings across many industries, which is exactly why we maintain diversified exposure to quality businesses positioned to benefit from sustained economic activity.

Source: Bloomberg (July 23, 2026)

Brookfield's $7 Billion Investment in Powering the Digital Economy

Brookfield Asset Management announced a $7 billion acquisition of Aypa Power, a battery storage developer with 6.5 gigawatts of operating and contracted capacity and more than 20 gigawatts under development.

The move reflects a simple reality: artificial intelligence, data centres, and electrification are driving electricity demand steadily higher, and battery storage is essential to delivering that power reliably. When leading infrastructure investors commit capital at this scale, it reinforces our positive outlook on companies positioned to benefit from the energy transition and the growth of the digital economy.

Source: Bloomberg (July 23, 2026)

Big Tech’s AI Spending Drives Revenue Growth

Alphabet reported stronger-than-expected cloud revenue alongside growing adoption of its Gemini AI platform, while analysts highlighted a significant long-term opportunity in Meta's AI-enabled wearable devices. These results matter because they show AI spending is turning into real revenue growth and stronger competitive positions rather than just ambitious promises. For long-term portfolios, the expanding commercialization of AI across software, cloud computing, and connected devices supports our exposure to innovative companies with durable advantages and multiple paths to growth.

 Source: Bloomberg (July 23, 2026)

Key Drivers of Our Outperformance

We believe in transparency when it comes to where our outperformance is coming from. This section spotlights a top-performing company we hold, a sector where we've taken a winning position, and a strategy that has driven recent success across our portfolios.

• Company Highlight: Exxon Mobil Corp. (XOM)
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• Exxon Mobil was one of our top performers last week, gaining 6.9% as oil prices climbed above US$94 per barrel on expectations of tighter global supply, brightening the earnings outlook for major energy producers. Attention now turns to the company's upcoming second-quarter earnings report, where stronger commodity prices are expected to support robust cash flow and continued returns to shareholders.
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• This is why we own Exxon Mobil: its diversified assets and disciplined approach to capital spending allow it to thrive when energy prices are strong while remaining resilient when conditions change.
  
  
• Source: Optimize Asset Management (July 23, 2026)
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• Sector Highlight: Energy
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• Energy led all sectors last week with a 0.21% contribution to performance, as ConocoPhillips rose 6.6%, Chevron gained 6.3%, and holdings across the group moved higher alongside oil prices. These companies share strong balance sheets, disciplined spending, and significant free cash flow that gets returned to shareholders.
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• While commodity prices can move in both directions, the long-term fundamentals for high-quality energy companies remain constructive, and our Canadian holding Enbridge has quietly gained 23.2% this year.
  
  
• Source: Optimize Asset Management (July 23, 2026)
  

• Style Highlight: Value
  
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• Our Value strategy delivered the strongest style contribution at 0.28%, led by attractively priced companies with resilient earnings, including AT&T, which jumped 7.5% after reporting stronger-than-expected results.

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• In periods of market uncertainty, investors gravitate toward businesses generating consistent cash flow today rather than paying premium prices for growth promised far in the future. We continue to favour companies that combine attractive valuations, sustainable cash flow, and disciplined capital allocation: qualities that reward patient investors across market cycles.
  

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  Source: Optimize Asset Management (July 23, 2026)
  

  
  
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What To Look For Next Week

We also look ahead to the economic reports, events, and earnings that may influence the week ahead. From inflation and jobs data to corporate updates from key market players, this section keeps you informed on what's coming, and why it matters.

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• U.S. Federal Reserve Rate Decision (Wednesday, July 29): The Federal Reserve concludes its two-day policy meeting next Wednesday afternoon, with the rate decision announced at 2 p.m. ET followed by Chair Kevin Warsh's press conference. Markets will be listening closely for signals about the direction of interest rates through the remainder of the year, particularly with inflation still running above the Fed's 2% target. Because rate expectations influence everything from bond yields to stock valuations, this is the single most important event on next week's calendar.
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  Sources: U.S. Federal Reserve (July 23, 2026)
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• Mega-Cap Technology Earnings (Wednesday and Thursday, July 29 to 30): Some of the world's largest companies report quarterly results next week: Microsoft and Meta on Wednesday, followed by Apple and Amazon on Thursday. With AI investment the central theme of this earnings season, investors will be watching whether these companies continue converting heavy spending into revenue growth, just as Alphabet recently demonstrated. Because these businesses carry substantial weight in major stock indexes and several are core holdings in our portfolios, their results can influence overall market direction.
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  Source: Bloomberg (July 23, 2026)
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• U.S. Second-Quarter GDP (Thursday, July 30): Next Thursday morning brings the first official estimate of how quickly the U.S. economy grew from April through June, following a solid 2.1% annualized pace in the first quarter. GDP is the broadest measure of economic health, capturing consumer spending, business investment, government activity, and trade in a single report. Continued growth would reinforce the case that corporate earnings can keep expanding, supporting a constructive backdrop for both stocks and the broader economy.
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  Source: Trading Economics (July 23, 2026)
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  Sources: Bloomberg (July 23, 2026), Optimize Asset Management (July 23, 2026), Trading Economics (July 23, 2026), Statistics Canada (July 16, 2026), Trading Economics (July 23, 2026). 
  

   

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Disclaimer: This report is for informational purposes only and does not constitute investment advice. Please consult with your financial advisor before making any investment decisions.